Brisbane property cannot be rented out after > 2 months

Discussion in 'Property Management' started by PropertyInsight, 11th Jun, 2019.

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  1. PropertyInsight

    PropertyInsight Well-Known Member

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    Hi

    My property in Brisbane South West has not been rented out for more than 2 months on the market. Price dropped from $700/week to $595/week. It was rented out for $700/week within 1 week last year. Do anyone have the same experience.

    Note. I have received 4 applications from prospective tenants but they all pulled out when the agent contacted them.

    I think about changing the PM. Any one know a good property manager in areas Chapel Hill, Kenmore areas?
     
  2. Pumpkin

    Pumpkin Well-Known Member

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    Firstly, generally speaking it is low season now but without knowing the specifics, I can't comment any further. What did your PM say, and how did they explain all these "withdrawals"?
     
    Last edited by a moderator: 12th Jun, 2019
  3. Dan Wood

    Dan Wood Well-Known Member

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    Have the listing link?

    What's the attendance rate like?
    Any comments from potential renters? Kitchen to small etc.
     
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  4. Marg4000

    Marg4000 Well-Known Member

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    There is a lot you can do.

    Take a close look at the advertisement, make sure photo are clear and show the property well. Make sure all advertised features are supported by photos - especially kitchen and bathroom/s. Does the wording look professional, and list all features?

    Then search for comparable properties available for rent in the area, and ensure your pricing is at the cheaper end of the range.

    Do you allow pets? This can widen the range of tenants.

    Ask your PM for feedback on why property is not attracting tenants, and if there is anything that needs improving or updating.

    As said, if you are prepared to link the ad, then suggestions can be more specific.
    Marg
     
  5. PropertyInsight

    PropertyInsight Well-Known Member

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    1. PM told me they did the best they can. Rent has been dropped 4 times: $700 -> $665 -> $635 -> $595
    2. There were people who attended inspections
    3. 4 applications were submitted but they pulled out in the last minutes with different comments i.e. small wardrobe, they found somewhere else, yard too large to maintain etc
    4. Rents of other properties in the areas keep dropping, and we tried to reduce to match with their rent.
    5. I checked SQM Research web site, the vacancy rate is high (5.8%)

    Now I am offerring 2 weeks free
     
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  6. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Sorry to hear. Past performance unfortunately is not an indicator of future performance. As mentioned above there are a range of things an agent can do beyond just price so make sure they are getting done eg. Professional photos, private and open inspections, boost the listing etc. If it has been vacant for two months make sure it has had a spruce clean to clear dust and bugs and the yards are kept done.

    Even little things like that can be indicator that others may feel the same but are not saying anything. Maybe consider including yard maintenance in the rent?

    - Luke
     
  7. Simon Hampel

    Simon Hampel Founder Staff Member

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    How long have you owned this property?

    Just for comparison in regards to vacancy rates - I've lived in Artarmon for the past 20 years and I've seen the (unit) rental market so tight that prospective tenants would line up down the street at an open inspection, and the smart people would hand a completed application form to the agent as they walked inside to have a look at what they've applied for. Only the first half dozen applications would be considered - the rest would be rejected.

    But I've also seen the rental market so flat that properties were vacant for months and landlords were offering up to 6 weeks free rent, plus a free flight to Melbourne or Brisbane just to try and get a tenant.

    My block of units in Adelaide is near a university and so very much subject to seasonal demand. We had a situation a couple of years back where a miscommunication between me and my property manager saw us miss the peak letting period and one of my units was vacant for quite a few months (fortunately my other units were all rented!). During peak letting period, it's generally very close to zero vacancy.

    Just some examples of what can happen.

    If there is an oversupply in the area or a general lack of demand (perhaps from a lot of new supply coming from nearby suburbs taking all your prospective tenants?) then that can have a negative impact on rents.
     
  8. Marg4000

    Marg4000 Well-Known Member

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    If the large yard maintenance is a drawback, consider including a monthly lawn mowing service to lessen the work. Ensure any gardens are easy care and well mulched to keep down weeds.
    Marg
     
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  9. Pumpkin

    Pumpkin Well-Known Member

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    This is interesting...Not!
    Something is not right, but without the specifics, I find it hard to comment.
    As mentioned, it is indeed a low season now. But if the property is a solid one, it should sell.
    If you can provide more info would be good. We are here to help.
     
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  10. Dan Wood

    Dan Wood Well-Known Member

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    I'd be concerned if OP was selling their house for $595 ...
     
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  11. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Houses in the Western Suburbs shouldn't be slowing that dramatically?

    I recently re-rented one in Indooroopilly without much of a bump- the last tenants we found rented at $525.00wk (up from $450.00wk with the last agents), but when it came up for rent this year we noticed enquiry levels and feedback weren't right, so we reduced to $515.00wk, then $500.00wk after the second week, and it got snapped up the next day. Realistically we got lucky with the earlier $525.00wk result too.

    The biggest issue agents have is not reacting quickly enough- you're all but dead in the water after two months, enquiry levels drop off dramatically after one month.
    __________________________________________________________________________

    If you put yourself in the shoes of a potential renter, how does it compare to nearby properties? Do they have professional photos, prominent advertising, weekend viewings? Is the property presentable- mowed, in good repair and reasonably clean?
     
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  12. quop

    quop Well-Known Member

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    Firstly I wouldn't have thought that Chapel Hill/Kenmore area would be classified south west...?

    I have a townhouse in the south that has been on the rental market for about 1.5 months and the only real application received was for someone wanting a 3 month lease. It had been renting at $395 for the past 2 years, and PM suggested $400 when the previous lease was ending (tenants moved to their own place). 3 OFIs and a grand total of 0 turnout later, price was dropped to $380, making it the cheapest 3/2/1 in the suburb. Got a few groups of people through in subsequent inspections (some still 0 turnout), and a few initial interest that all fizzled. Got pro photos done and one person came on the weekend, saying that they didn't believe the property reflected what was online...

    So I've pulled the plug on the current PM and will be moving across to the on site manager of the townhouse complex who has contacts for renovating the unit and will project manage the trades - repaint throughout, new floor downstairs, maybe refresh kitchen...
     
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